Anyone looked into Marinas?

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June 08, 2018

by a searcher from University of Pennsylvania - The Wharton School

Just wanted to see if others had experience looking at marinas and how they are evaluated usually - by the real estate or by the business and loan financing for these types of deals?

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Reply by an investor
from University of Miami in New York, NY, USA
Clay, perhaps you already know about them but several institutional investors are targeting this space alongside MH, RV parks, and campgrounds. ELS, a publicly traded REIT, is big in the space, as is Sun Communities.

https://www.equitylifestyleproperties.com/our-portfolio/marina-portfolio

https://suncommunities.gcs-web.com/static-files/3be33551-4ea0-4e35-be56-fd38360688c4
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Reply by a searcher
from Harvard University in Boston Metropolitan Area, USA
Clay - I have some experience with roll ups of marina's from my prior career. These businesses generally trade on a cap rate bases. Good one's are 4-6% cap rates with smaller ones in the 10% cap rate range - still well above the 3-5x EBITDA traditional search fund range. Depending on where you are looking, marinas are cyclical, seasonal and exposed to damage from storms. Factors like mix of sailboats vs. motor boats can play a factor in profitability, seasonality and ability to increase prices as well, especially if other marinas are easily accessible for those boat owners to switch to.
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